Isaac Shekarau

BHU/21/03/03/0052
ECO 323
Assignment

Question :- List and explain various money market instruments.

Treasury Bills: These are government backed, short term
securities that are issued by The Central Bank of Nigeria.

Banker’s Acceptance: This is a form of short term debt that is

issued by a firm but guaranteed by a bank. It is created by a
drawer, providing the bearer of the rights to the money indicates
on its face, a specific date.
 Re-Purchase Agreements: a short term form of borrowing that
involves selling a security with an agreement to Re-Purchase it
at a higher price at a later date.

Certificate of Deposit: This is issued directly by a commercial

bank, but it can be purchased through brokerage firms. It comes
with a maturity date ranging from three months to five years and
can be issued in any determination.

Commercial Paper: This is an unsecured loan issued by large

institutions to finance short term cash flow needs, such as
inventory and accounts payables. It is issued at a discount, with
the difference between price and face value of the commercial
paper being the profit to the investors.

References
https://m.economictimes.com/definition/money-market/amp
https://www.coverfox.com/personal-finance/mutual-funds/money-
market-instruments/